North Carolina Down Payment Assistance Systems

Payments Gateway - The North Carolina Housing Finance Agency got two great programs for First Time Home Buyers. These programs would be the deposit Assistance System and the Mortgage Credit Certificate.

Also you purchase a property between December 1, 2009 and January 1, 2009 and if you meet the requirements for one of those plans, you could also qualify for the $8,000 tax credit only enacted into law.

First, who is a First Time Home Buyer? A First Time Home Buyer is someone who hasn't owned a home in the prior three years. This is exactly the same qualifying definition for the $8,000 tax credit.

A Mortgage Credit Certificate (MCC) is a national tax credit to help home buyers with average and low incomes. The MCC takes this a step farther.

If you qualify for the MCC, you'll be able to claim 20% of the interest you pay as a credit in your federal income taxes on your mortgage. You can save up to $2,000 on your taxes.

You will have the ability to unite this with the $8,000 tax credit if you do qualify for the MCC, for 2009. This may reduce a purchaser's tax liability by $10,000.

Household income is defined as the “gross income of the mortgagor and any other man expected to reside in the residence who is 18 years of age or older.”

House price limitations that apply in Durham, Orange and Chatham Counties and the income are listed below.

MCC Income Limitations 1 Person $61,500 2 Persons $61,500 3 Men $70,500 4 Individuals $70,500

MCC Sales Cost Limitations New Home $220,000 Existing Residence $210,000

Who Qualifies for Down Payment Assistance?

The customer just has to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.

This program has stricter income limitations than the MCC program summarized above. Like the MCC program, it can be used together with all the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, nonetheless, cannot be applied together with the MCC. This is an either or scenario.

The income and house price limitations that apply in Durham Orange and Chatham Counties are given below.

Down Payment Assistance Income Limitations

1 Individual $39,950 2 Persons $45,650 3 Individuals $51,350 4 Persons $57,050

Down Payment Support Sales Price Limits New Home $210,000 Existing Residence $210,000